Mineral Rights 101 for Ovalo Buyers

October 16, 2025

Buying a home or acreage in Ovalo and wondering who owns the oil and gas under your land? You are not alone. Mineral rights in Texas can be confusing, and a missed clause in a deed can affect your surface use, income, and taxes. In this guide, you will learn what mineral rights mean in Texas, how to check ownership in Taylor County, what drives value, and the exact steps to protect your purchase. Let’s dive in.

Mineral rights basics in Texas

In Texas, the mineral estate can be owned separately from the surface. The mineral estate is legally dominant, which means the mineral owner or their operator can use the surface as reasonably necessary to explore and produce minerals. The Railroad Commission of Texas explains this relationship and surface-use limits for negligence and unreasonable use in its overview of mineral and surface ownership.

Common interests include a fee mineral estate (ownership of minerals in place), royalty interests (a share of production revenue), and working interests (sharing costs and income). You may also see net mineral acres and net revenue interest used in offers and valuations.

Bottom line: do not assume minerals convey with the surface. You only own minerals if the recorded deed says so and there is no earlier severance.

Who owns the minerals in Ovalo

Start with the county’s public records. Search the Taylor County Clerk’s Official Public Records for deeds, mineral deeds, oil and gas leases, reservations, and releases tied to the property’s legal description. You can use the online search offered by the Taylor County Clerk.

A mineral title search is different from standard surface title. Texas A&M AgriLife notes that confirming mineral ownership may require a thorough chain-of-title review and professional help. Their guide on how to determine ownership is a useful primer: find out if you own mineral rights.

For activity checks, you will also review Railroad Commission records for wells, leases, and production associated with the tract’s legal description and nearby units.

Local context for Taylor County

Ovalo sits in a county with lighter oil and gas activity than Texas’s top-producing areas. Public aggregators show historical wells and a smaller set of active producers, which means many parcels may have little or no current production. For county-level activity snapshots, see Taylor County data and confirm details with RRC records when you evaluate a specific tract.

Minerals and production can affect taxes. Taylor County’s appraisal system includes minerals on the tax roll. For parcel-level questions on how minerals are assessed or listed, contact the Taylor Central Appraisal District.

Value drivers and lease terms

If minerals are part of your Ovalo purchase, these factors often drive value:

  • Lease status and production. Leased and producing minerals are usually worth more than unleased, nonproducing minerals.
  • Royalty fraction. Older leases may pay 1/8. Newer competitive leases often pay higher fractions like 3/16 or 1/5, which can improve cash flow.
  • Contract terms. Clauses on deductions, pooling, Pugh, and whether the lease is held by production can change the economics.
  • Acreage and net revenue interest. Buyers price what they actually receive, not just gross acres.

For a helpful overview of how these factors affect worth, see this guide on mineral rights value drivers.

Due diligence checklist for buyers

Before you write the offer

  • Ask the seller, in writing, whether minerals are included or reserved. Use clear deed language to avoid disputes later.
  • Gather the exact legal description and any tract IDs to use in county and state searches.

Title and recording checks

  • Instruct your title company or abstractor to run a mineral chain-of-title search, not just surface title. Ask for any reservations, severances, leases, assignments, or liens that affect minerals.
  • If minerals are leased, request copies of leases, amendments, and division orders. Note the royalty fraction, deductions language, pooling, Pugh clauses, and term.

Use public records and regulators

  • Search the Railroad Commission’s well and production databases for wells, permits, and operators tied to your tract or unit. Start with the RRC’s online well records and production queries.
  • Search the Taylor County Clerk’s Official Public Records for recorded mineral deeds, leases, and releases using the legal description and grantor/grantee names via the county records portal.
  • Ask the Taylor CAD how minerals are listed or taxed for the parcel. Use the Taylor CAD resources to start the conversation.

Contract and closing protections

  • If you want minerals, include an explicit mineral conveyance clause in the deed and confirm evidence in the title commitment or recorded documents.
  • If you are buying surface only, have the deed clearly exclude or reserve minerals to prevent ambiguity.
  • Expect standard title policies to include general mineral exceptions. Review the Texas Title Manual so you understand what is and is not covered, and ask about endorsements only if available. See the Texas Department of Insurance Title Manual.

Trusted advisors

  • Use a title company experienced with Texas mineral title. If you see old severances, multiple heirs, or unclear leases, consult an oil and gas attorney.

Common pitfalls to avoid

  • Assuming title insurance covers minerals. Many standard policies contain mineral exceptions unless specifically endorsed. Review your coverage and endorsements.
  • Overlooking old severances or ambiguous deed language. These can hide ownership splits and delay closing.
  • Valuing based on a short run of strong production. Early production often declines; base decisions on complete records, not just initial months.
  • Forgetting tax implications. Confirm whether minerals are on the roll and how production is assessed for your parcel.

When minerals are sold separately

If someone offers you minerals apart from the land, verify title first and understand the income profile. For producing royalties, many buyers price by a multiple of recent annual net revenues, often a few years of cash flow depending on asset quality and risk. See this plain-English overview on how to buy mineral rights for common approaches and considerations.

Ready to move forward in Ovalo with confidence? We help you align your goals, coordinate the right searches, and craft clear contract language so there are no surprises at closing. Reach out to Tiny or Grand Realty Group to get started.

FAQs

Do you automatically get mineral rights with a home in Ovalo?

  • No. You only receive minerals if the deed clearly conveys them and no earlier owner severed them. Always confirm with a mineral title search.

Can a mineral owner use the surface on your Ovalo property?

  • Yes, within reason. In Texas the mineral estate is dominant, so the mineral owner or operator can use the surface as reasonably necessary, with liability for negligent or unreasonable damage.

How do you check if an Ovalo parcel is leased or producing?

  • Search Taylor County’s recorded documents for leases, then confirm wells, permits, and production through the Railroad Commission’s databases. Ask for division orders or royalty statements if production is active.

Are mineral rights taxed differently in Taylor County?

  • Minerals can be listed on the county’s tax roll and assessed separately if tied to production. Contact the Taylor Central Appraisal District for parcel-level treatment.

Is buying unleased, nonproducing minerals a good idea in Ovalo?

  • Sometimes, but it is speculative. Values vary widely and may be low if leasing is unlikely. Verify title, check nearby activity, and price conservatively.

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